FTSE 100 Index Hits Resistance After Remarkable December Rally
The FTSE 100 index appears to be consolidating after breaking the 7,700 level earlier this month. The British benchmark closed 2.21 points down on Thursday due to the profit-taking after a remarkable December rally.
However, the technical indicators are pointing toward more upside in the coming weeks. The index closed at 7,722 points on Thursday as most UK equities experienced a pullback on the second last trading day of 2023.
A strong surge in the US equities in the last two months has boosted investor confidence in the UK-listed shares as well. As a result, the FTSE 100 index is up 269 points this month, and the high timeframe outlook remains positive.
The uptrend comes despite the hawkish stance of the Bank of England, as the central bank vowed to maintain rates at terminal levels for longer than previously anticipated. However, analysts are confident that the dovish stance of the US Fed could make the British central bank reconsider its policy.
From the perspective of technical analysis, the index seems to be lacking momentum after breaking above the key technical level of 7,685 points. If this level holds in the coming days, the FTSE 100 index forecast will remain bullish with the immediate bullish target of 7,875 points.